§ Mr. Arthur Lathamasked the Secretary of State for Social Services (1) what would be the estimated cost to the National Insurance Fund in 1976–77, at current levels of benefit, of increasing the earnings rule threshold for retirement pensioners to £35 (a) if the retirement condition is preserved and (b) if the retirement condition is abandoned; how many pensioners would benefit under (a) and (b), respectively; and what is his estimate of the additional tax revenue which would accrue to the Treasury under (a) and (b) above, assuming current rates of tax;
(2) what would be the estimated cost to the National Insurance Fund in 1977–78 at current levels of benefit of increasing the earnings rule threshold for retirement pensioners to £50 (a) if the retirement condition is preserved and (b) if the retirement condition is abandoned; how many pensioners would benefit under (a) and (b) above, respectively; and what is his estimate of the additional tax which
A. COST OF EASING EARNINGS RULE WHILE RETAINING THE RETIREMENT CONDITION Earnings Rule limit Cost to National Insurance Fund* Additional tax revenue Number of Pensioners affected† £35 in 1976–77‡ £60m. £15m. 100,000 £50 in 1977–78§ £50m. £10m. 85,000
B. COST OF EASING EARNINGS RULE WITH ABANDONMENT OF THE RETIREMENT CONDITION £35 in 1976–77‡ £80m. £20m. 155,000 £50 in 1977–78§ £75m. £20m. 125,000 Abolition of rule from 1976–77║ £135m. £35m. 230,000 * Extra benefit cost plus loss in contributions. † The estimate counts retirement pensioners, including wives claiming pension on their husbands' insurance, and invalidity pensioners with wives affected by the earnings rule. ‡ The cost in 1976–77, at November 1975 benefit rates, of increasing the limit to £35 from what it would have been in that year had the £20 limit effective from April 1975 been uprated in line with earnings. § The cost in 1977–78, at November 1975 rates of benefit, of increasing the limit to £50 instead of the present £35 uprated in line with the movement of earnings. ║ The cost in 1976–77, at November 1975 rates of benefit, of abolishing the earnings rule as compared with retaining the present limit of £35.